" AS IS' Home purchase . What buyers should know .

Real Estate Agent with RE/MAX Centre Realtors

"AS IS" home purchase . What buyers should know before writing the purchase agreement.

This is not legal advice and buyers should seek legal advice when purchasing a home. Laws may be different in different States Ask your Real estate agent to guide you about disclosure laws in the state.

Before making an offer on a home please know that when sellers say they are selling the home ' as is ' it does not mean that you cannot have a home inspection. In fact you should always have a home inspected by a quailfied home inspector.

The purpose of the home inspection is to find out about material defects . If it is going to cost too much to repair / replace items mentioned by the home inspector, based on the contingency clause in your agreement of sale, you can decide whether you want to purchase the home or not. When the seller is selling 'as is,'  it means that the seller is not going to do repairs. This is quite common in bank owned homes .

It is important to get a home inspection even when you are buying a home  'AS IS'

The sellers may have a number of reasons for selling 'AS IS.'

1. They may not have enough money to pay for repairs.

2.They may not know any handymen or contractors to get the work done.

3. They may be scared to have strangers come to the house to repair the items.

4.They may not want to be bothered with repairs and may not mind selling for less money. They may have listed accordingly.

5.It may be an inconvenience to repair or replace items that need it for a number of reasons including health issues, relocation etc.

If your contract states that you have the option to back out of the contract if you are not satisfied with the inspection report you can do so. You can also try to get the seller to credit you at settlement for  items mentioned in the inspection report.

In some instances the seller may be willing to adjust the price or give you credit at settlement.

Another misconception buyers have about AS IS sales is they think that they will get all the furniture in the house when they buy the house. Furniture is not part of real estate . Fixtures that are permanently installed are included but the furniture is not included unless it is mentioned in the mls and you should then  mention in the agreement of sale that it should be included. All inclusions and exclusions should be spelled out. It is common for washer, dryer and refrigerator to be negotiable items, because they are not permanently attached they are not  fixtures.

Also make sure you have a clause that says the place should be broom clean, There have been sellers who have left all the junk in the basement saying it was sold AS IS . You may have to buy a home in this condition  if it is a foreclosed hom.

It is important to work with a good buyer agent and a good attorney when buying a home.

Sellers should disclose known material defects even if they are selling AS IS. Check with your agent  or attorney about discosure laws.






Posted by

When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com


She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com


 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.




Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Ritu Desai 02/02/2012 06:39 AM
  2. Gene Riemenschneider 02/04/2012 04:29 AM
  3. Gabe Sanders 02/05/2012 10:19 PM
  4. Dale Taylor 02/25/2012 02:36 PM
  5. Joy Daniels 10/06/2012 08:39 AM
Real Estate General Information
RE/MAX Active Rain Bloggers
Posts to Localism
Local Expert
Advice for Buyers
2012 BIG Jumpstart Blog Challenge
as is home sale

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

Representing the buyer, the term "as is" means getting a home inspection and making sure the repairs needed doesn't include any major deficiency that the buyer can't live with. 

For the sellers, "as is" means they will not make repairs........clearly stated.

Feb 03, 2012 11:04 AM #48
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA


I forget that some buyers may thing the seller is leaving the furniture as well as the house in an as is sale.  I must remember to say that when my customers are looking at homes. 

Feb 03, 2012 11:19 AM #49
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR

Good information, Gita!  I would just add that a lot of homes, especially in Florida, are sold as is often because there is no one here to do the repairs.  The homes are vacant - I am not talking about bank-owned homes here.  These could be estate sales.  No one is here, so it is easier to sell it as is.

Congraultaions on the feature!

Feb 03, 2012 01:36 PM #50
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

Most real estate transactions are technically 'as is' and it's the inspection that helps the buyer determine if that's acceptable. Home warranties are the way around that.


Feb 03, 2012 02:10 PM #51
Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572
CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents - Monument, CO
Angel Realty, LLC

Congrats on the feature! An inspection can save a buyer thousands of dollars when it comes to purchasing as is homes. Thanks for sharing and have a great weekend.

Feb 03, 2012 02:36 PM #52
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Exactly "As is" simply means "we will not do a thing to fix it up".  Of course if you find something serious they will often change their minds.

Feb 03, 2012 02:58 PM #53
Luis Iniguez
Option One Real Estate - Fontana, CA
Search Inland Empire Homes For Sale - Short Sale Agent

This is the case with almost every shortsale and REO.  Banks are not willing to cover any expenses.

Feb 03, 2012 03:27 PM #54
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

Hi Gita, well, it looks like you have certainly hit every part of that issue. Well done!          

Feb 03, 2012 05:24 PM #55
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

This is the second post recently I have read that mentioned "broom clean" in the contract.  I don't know if you have a specific already written clause in your contract, but it seems that some (many?) states do.  We don't, and it would be interesting (and kind of nice) if we did.  We don't have any kind of clause as to how the home has to be left. -Kasey

Feb 03, 2012 06:20 PM #56
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Saturday morning.

Have an outstanding weekend as home buyers take advantage of the attractive prices and record low mortgage interest rates.

Feb 04, 2012 12:45 AM #57
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Kay, Agents should explain it to their clients so that there is no misunderstanding.

Evelyn, If it is an estate sale buyers assume there is no one who want the stuff. They forget there are heirs who will take it.

Elyse, That is one of the reasons they sell AS IS.

Feb 04, 2012 09:23 AM #58
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Gretchen, Buyers should read the fine print as warranty companies do not cover everything.

Laurie, I agree. It is good to have a home inspection.

Gene, Sellers do change their minds sometimes

Feb 04, 2012 09:25 AM #59
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Gita,  Of course all are distressed sales are As-Is.  But I suggest many of my sellers to go as is to protect them from large repairs.  Usually, this is for older homes and have been vacant for a while and the offer is low so the buyer is already getting a good deal.

Feb 05, 2012 01:22 AM #60
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Bob, I agree there are good reasons to sell As IS.

Feb 05, 2012 01:45 AM #61
Sylvie Stuart
Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagsta

There is a lot of misunderstanding surrounding the as-is addendum and with properties being advertised as "as-is". This will be very helpful for consumers, the most valuable is knowing that you can still have an inspection to look for deal breakers.

Feb 06, 2012 01:00 AM #62
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Luis, We should explain it to buyers and make an offer accordingly.

Sandy, Thanks for reading.

Kasey, There should be some kind of a clause so that there will not be surprises.

Roy, Have a good day.

Sylvie. It is important to have a home inspection.

Feb 06, 2012 01:06 AM #63
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Inspection is even more important on as is sales. When the issue is major often a bank will make the repair on the property.

Feb 25, 2012 02:43 PM #64
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Elite home sales team, I agree. Inspections are important in' as is 'sales.

Feb 29, 2012 06:28 AM #65
Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Gita, that was a great explanation of an "as-is" sale that I've ever seen.  Whatever the reawson, I'm glad you included the hint that the seller may take less money.  SOme people are scared off by someone wanting an as-is sale.

Oct 06, 2012 10:41 AM #66
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Gary, Sellers should realize that buyers do not offer full price if it needs work.

Oct 06, 2012 08:31 PM #67
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Gita Bantwal

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
Call me for free market evaluation of your home
Spam prevention